LAKE SUCCESS, N.Y.,
May 8, 2012 /PRNewswire/
-- DealerTrack Holdings, Inc. (Nasdaq: TRAK) today reported
financial results for the first quarter ended March 31, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20101028/DEALERTRACKLOGO )
GAAP Results for the First Quarter 2012
- Revenue for the quarter was $91.6
million, as compared to $77.2
million for the first quarter of 2011
- GAAP net income for the quarter was $17.0 million, as compared to $24.7 million for the first quarter of 2011
- Diluted GAAP net income per share for the quarter was
$0.39, as compared to $0.59 for the first quarter of 2011
GAAP net income for the first quarter of 2012 was positively
impacted by $16.1 million (net of
tax), or $0.37 per share, from a
non-cash gain related to the contribution of Chrome to the Chrome
Data Solutions, LP joint venture. GAAP net income for the
first quarter of 2011 was positively impacted by $24.5 million, or $0.58 per share, from a non-cash reduction in the
valuation allowance against the company's net U.S. deferred tax
assets.
Non-GAAP Results for the First Quarter 2012
- Adjusted EBITDA for the quarter was $19.4 million, as compared to $15.5 million for the first quarter of 2011
- Adjusted net income for the quarter was $9.4 million, as compared to $7.5 million for the first quarter of 2011
- Diluted adjusted net income per share for the quarter was
$0.22, as compared to $0.18 for the first quarter of 2011
Guidance for 2012 Annual Revenue Performance
DealerTrack raised annual guidance for revenue and
non-GAAP earnings to reflect its stronger outlook for the year, and
adjusted its expected GAAP earnings to further reflect certain
interest expense and costs related to the company's issuance of
$200 million in senior convertible
notes in March 2012, as follows:
Expected GAAP Results
- Revenue for the year is expected to be between $375.0 million and $382.0 million, an increase
from prior guidance of between $365.0 to
$372.0 million
- GAAP net income for the year is expected to be between
$27.0 million and $30.0 million, a
decrease from prior guidance of between $33.0 million and $36.0 million
- Diluted GAAP net income per share for the year is expected to
be between $0.61 and $0.68, a
decrease from prior guidance of between $0.75 and $0.81 per share
Expected Non-GAAP Results
- Adjusted EBITDA for the year is expected to be between
$94.0 million and $97.0 million, an increase from prior guidance of
between $91.0 and $95.0 million
- Adjusted net income for the year is expected to be between
$46.0 million and $49.0 million, an increase from prior guidance of
between $44.0 and $47.0 million
- Diluted adjusted net income per share for the year is expected
to be between $1.04 and $1.11, an
increase from prior guidance of between $0.99 and $1.06
The guidance assumes that new car sales by franchised dealers
will be approximately 14.2 million units, up from our previous
expectation of 13.5 million units, and used car sales by franchised
dealers will be approximately 14.0 million units for 2012, an
amount unchanged from our previous estimate. Diluted GAAP net
income and adjusted net income per share guidance for the year
continue to be based on an estimated 44.3 million diluted weighted
average shares outstanding.
Mark F. O'Neil, chairman and chief executive officer of
DealerTrack, commented, "We are pleased with our strong performance
in the first quarter. Transaction revenue grew at a multiple of
growth in car sales as we increased the average transaction revenue
per car sold. Our subscription business also performed well, as we
saw particularly strong interest in our Inventory solution." O'Neil
further commented, "We are increasing our revenue guidance for
2012, reflecting strong first quarter results and an increase in
our 2012 car sales expectations. Continued momentum combined with
investments in our future growth make us more confident in our
outlook for 2012 and beyond."
Conference Call
DealerTrack will host a conference call to discuss its first
quarter 2012 results and other matters on May 8, 2012 at 5:00 p.m.
Eastern Time. The conference call will be webcast live
on the Internet at ir.dealertrack.com. In addition, a live
audio of the call will be accessible to the public by calling
877-303-6648 (domestic) or 970-315-0443 (international); no access
code is necessary. Callers should dial in approximately 10
minutes before the call begins. A replay will be available on
the DealerTrack website until May 21,
2012.
Non-GAAP Financial Measures
The non-GAAP measures of adjusted EBITDA and adjusted net income
disclosures are not presented in accordance with generally accepted
accounting principles (GAAP) and are not intended to be used in
lieu of GAAP presentations of net income. Adjusted EBITDA is
a non-GAAP financial measure that represents GAAP net income (loss)
excluding interest, taxes, depreciation and amortization expenses,
stock-based compensation, and contra-revenue and may exclude
certain items such as: impairment charges, restructuring
charges, impact of acquisition-related activity (including
contingent consideration changes, compensation expense, basis
difference amortization, and professional service fees), realized
gains or losses on sales of securities, gains or losses on sales or
disposals of subsidiaries, and certain other non-recurring
items.
All stock-based compensation expense is excluded from the
calculation of the adjusted EBITDA non-GAAP measure. This may
reduce the comparability with prior periods. This non-cash expense
was included in presentations prior to fourth quarter 2011.
Adjusted net income is a non-GAAP financial measure that
represents GAAP net income (loss) excluding stock-based
compensation expense, the amortization of acquired identifiable
intangibles, and contra-revenue, and may also exclude certain items
such as: impairment charges, restructuring charges, impact of
acquisition-related activity (including contingent consideration
changes, compensation expense, basis difference amortization, and
professional service fees), realized gains or losses on sales of
securities, gains or losses on sales or disposals of subsidiaries,
adjustments to deferred tax asset valuation allowances, non-cash
interest expense and certain other non-recurring items. These
adjustments to net income, which are shown before taxes, are
adjusted for their tax impact.
Adjusted EBITDA and adjusted net income are presented because
management believes that they provide additional information with
respect to the performance of our fundamental business activities
and are also frequently used by securities analysts, investors and
other interested parties in the evaluation of comparable
companies. Adjusted EBITDA and adjusted net income are
also presented because the purchase accounting treatment of
acquisitions can have a negative impact on our GAAP results because
the depreciation and amortization expenses associated with acquired
assets, in particular intangibles which tend to have a relatively
short useful life, can be substantial in the first several years
following an acquisition. As a result, we monitor our adjusted
EBITDA and adjusted net income and other business statistics as a
measure of operating performance in addition to net income and the
other measures included in our consolidated financial
statements. Management believes the adjusted EBITDA and
adjusted net income information is useful to investors for these
reasons. Adjusted EBITDA and adjusted net income are non‑GAAP
financial measures and should not be viewed as an alternative to
GAAP measures of performance. Management believes the most
directly comparable GAAP financial measure for adjusted EBITDA and
adjusted net income is GAAP net income (loss) and has provided a
reconciliation of adjusted EBITDA to GAAP net income (loss) and
adjusted net income to GAAP net income (loss) in this press
release.
About DealerTrack (www.dealertrack.com)
DealerTrack's intuitive and high-value web-based software
solutions and services enhance efficiency and profitability for all
major segments of the retail automotive industry, including
dealers, lenders, OEMs, third-party retailers, agents and
aftermarket providers. DealerTrack, whose solution set for dealers
is the industry's most comprehensive, operates the largest online
credit application network in the United
States, connecting over 17,000 dealers with more than 1,100
lenders. DealerTrack's Dealer Management System (DMS)
provides dealers with easy-to-use tools and real-time data access
to enhance their efficiency. DealerTrack's Inventory offerings
provide vehicle inventory management and merchandising solutions to
help dealers drive higher in-store and online traffic with
state-of-the-art, real-time listings, accelerate used-vehicle turn
rates, and increase dealer profits. DealerTrack's Sales and F&I
solutions allow dealers to streamline the entire sales process as
they structure deals from a single integrated platform. Its
Compliance offering helps dealers meet legal and regulatory
requirements, and protect their assets. DealerTrack also
offers additional solutions for the automotive industry, including
electronic motor vehicle registration and titling applications,
paper title storage, and digital document services. For more
information visit: www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary
Statements
Statements in this press release regarding DealerTrack's
expected 2012 performance based on both GAAP and non-GAAP measures,
the long-term outlook for its business, and all other statements in
this release other than the recitation of historical facts are
forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995). These statements involve a
number of risks, uncertainties and other factors that could cause
actual results, performance or achievements of DealerTrack to be
materially different from any future results, performance or
achievements expressed or implied by these forward-looking
statements.
Factors that might cause such a difference include: economic
trends that affect the automotive retail industry or the indirect
automotive financing industry including the number of new and used
cars sold; credit availability; reductions in auto dealerships;
increased competitive pressure from other industry participants,
including Open Dealer Exchange, RouteOne, CUDL, Finance Express and
AppOne; the impact of some vendors of software products for
automotive dealers making it more difficult for DealerTrack's
customers to use DealerTrack's solutions and services; security
breaches, interruptions, failures and/or other errors involving
DealerTrack's systems or networks; the failure or inability to
execute any element of DealerTrack's business strategy, including
selling additional products and services to existing and new
customers; DealerTrack's success in implementing an ERP system; the
volatility of DealerTrack's stock price; new regulations or changes
to existing regulations; the integration of recent acquisitions and
the expected benefits, as well as the integration and expected
benefits of any future acquisitions that DealerTrack may pursue;
DealerTrack's success in expanding its customer base and product
and service offerings, the impact of recent economic trends, and
difficulties and increased costs associated with raising additional
capital; the impairment of intangible assets, such as trademarks
and goodwill; and other risks listed in DealerTrack's reports filed
with the Securities and Exchange Commission (SEC), including its
most recent Annual Report on Form 10-K. These filings can be
found on DealerTrack's website at www.dealertrack.com and the SEC's
website at www.sec.gov. Forward-looking statements included herein
speak only as of the date hereof and DealerTrack disclaims any
obligation to revise or update such statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events or circumstances, except as required by
law.
|
|
Three-Month Period
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Consolidated Statements of
Operations
|
|
(Dollars in thousands, except share and per share
data)
|
|
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2012
|
|
2011
|
|
|
|
|
|
Net
revenue
|
$
91,617
|
|
$
77,191
|
|
Cost of
revenue
|
53,696
|
|
44,099
|
|
Product
development
|
3,544
|
|
3,742
|
|
Selling,
general and administrative
|
33,032
|
|
30,424
|
|
Total operating
expenses
|
90,272
|
|
78,265
|
|
Income (loss) from
operations
|
1,345
|
|
(1,074)
|
|
Interest
expense and other income, net
|
(688)
|
|
89
|
|
Gain on
disposal of subsidiary
|
27,693
|
|
-
|
|
Income (loss) before
(provision for) benefit from income taxes, net
|
28,350
|
|
(985)
|
|
(Provision
for) benefit from income taxes, net
|
(11,389)
|
|
25,713
|
|
Net
income
|
$
16,961
|
|
$
24,728
|
|
|
|
|
|
Basic net
income per share
|
$
0.40
|
|
$
0.61
|
|
Diluted
net income per share
|
$
0.39
|
|
$
0.59
|
|
Weighted
average common stock outstanding (basic)
|
42,090,947
|
|
40,851,659
|
|
Weighted
average common stock outstanding (diluted)
|
43,720,166
|
|
42,103,811
|
|
|
|
|
|
Adjusted
EBITDA - previous presentation (non-GAAP) (a)
|
$
16,089
|
|
$
12,678
|
|
Adjusted
EBITDA margin - previous presentation (non-GAAP) (b)
|
18%
|
|
16%
|
|
Adjusted
EBITDA (non-GAAP) (a)
|
$
19,419
|
|
$
15,493
|
|
Adjusted
EBITDA margin (non-GAAP) (b)
|
21%
|
|
20%
|
|
Adjusted
net income (non-GAAP) (a)
|
$
9,444
|
|
$
7,490
|
|
Diluted
adjusted net income per share (non-GAAP)
|
$
0.22
|
|
$
0.18
|
|
|
|
|
|
Stock-based compensation expense was classified as
follows:
|
|
|
|
|
Cost of revenue
|
$
635
|
|
$
427
|
|
Product development
|
214
|
|
185
|
|
Selling, general and
administrative
|
2,481
|
|
2,330
|
|
$
3,330
|
|
$
2,942
|
|
|
|
|
|
(a) See Reconciliation
Data.
|
|
|
|
|
(b) Represents adjusted
EBITDA as a percentage of net revenue.
|
|
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Condensed Consolidated Balance
Sheets
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
2012
|
|
December 31,
2011
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
257,544
|
|
$
78,709
|
|
Investments
|
|
80
|
|
46
|
|
Customer
funds
|
|
1,477
|
|
1,097
|
|
Customer
funds receivable
|
|
20,526
|
|
18,695
|
|
Accounts
receivable, net
|
|
39,025
|
|
37,588
|
|
Deferred
tax assets
|
|
9,188
|
|
9,171
|
|
Prepaid
expenses and other current assets
|
|
23,668
|
|
23,011
|
|
Total current assets
|
|
351,508
|
|
168,317
|
|
|
|
|
|
|
Property
and equipment, net
|
|
21,816
|
|
21,637
|
|
Software
and website development costs,
net
|
|
36,241
|
|
37,341
|
|
Investments - long-term
|
|
132,359
|
|
89,000
|
|
Intangible
assets, net
|
|
87,551
|
|
96,441
|
|
Goodwill
|
|
193,423
|
|
200,840
|
|
Deferred
tax assets
|
|
33,436
|
|
34,421
|
|
Other
assets - long-term
|
|
17,155
|
|
12,356
|
|
Total assets
|
|
$
873,489
|
|
$
660,353
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
|
$
31,368
|
|
$
41,194
|
|
Customer
funds payable
|
|
22,003
|
|
19,792
|
|
Deferred
revenue
|
|
8,531
|
|
9,115
|
|
Deferred
tax liabilities
|
|
3,443
|
|
3,443
|
|
Capital
leases payable
|
|
204
|
|
255
|
|
Total current liabilities
|
|
65,549
|
|
73,799
|
|
Long-term
liabilities
|
|
257,826
|
|
91,798
|
|
Total liabilities
|
|
323,375
|
|
165,597
|
|
Total
stockholders' equity
|
|
550,114
|
|
494,756
|
|
Total liabilities and stockholders'
equity
|
|
$
873,489
|
|
$
660,353
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Consolidated Statements of Cash
Flows
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2012
|
|
2011
|
|
Operating activities:
|
|
|
|
|
Net
income
|
$
16,961
|
|
$
24,728
|
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
|
|
|
|
|
Depreciation and amortization
|
11,979
|
|
11,745
|
|
Deferred tax provision
(benefit)
|
10,893
|
|
(24,670)
|
|
Stock-based compensation
expense
|
3,330
|
|
2,942
|
|
Provision for doubtful accounts and
sales credits
|
2,146
|
|
1,737
|
|
Earnings from equity method investment,
net
|
(163)
|
|
-
|
|
Deferred compensation
|
38
|
|
50
|
|
Stock-based compensation windfall tax
benefit
|
(2,943)
|
|
(1,304)
|
|
Gain on disposal of
subsidiary
|
(27,693)
|
|
-
|
|
Amortization of debt issuance costs and
debt discount
|
729
|
|
-
|
|
Change in contingent
consideration
|
(250)
|
|
-
|
|
|
|
|
|
Changes in
operating assets and liabilities, net of effects of
acquisitions:
|
|
|
|
|
Accounts
receivable
|
(6,742)
|
|
(6,420)
|
|
Prepaid
expenses and other current assets
|
3,059
|
|
(3,301)
|
|
Other
assets — long-term
|
1,539
|
|
809
|
|
Accounts
payable and accrued expenses
|
(11,441)
|
|
(11,350)
|
|
Deferred
rent
|
48
|
|
92
|
|
Deferred
revenue
|
527
|
|
788
|
|
Other
liabilities — long-term
|
(1,166)
|
|
705
|
|
Net cash
provided by (used in) operating activities
|
851
|
|
(3,449)
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2012
|
|
2011
|
|
Investing activities:
|
|
|
|
|
Capital
expenditures
|
(1,695)
|
|
(3,102)
|
|
Capitalized software and website development
costs
|
(3,665)
|
|
(3,359)
|
|
Cash
contributed for equity method investment
|
(1,750)
|
|
-
|
|
Payment
for acquisition of businesses, net of acquired cash
|
-
|
|
(128,482)
|
|
Net cash
used in investing activities
|
(7,110)
|
|
(134,943)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Principal
payments on capital lease obligations and financing
arrangements
|
(349)
|
|
(159)
|
|
Proceeds
from the exercise of employee stock options
|
3,478
|
|
2,215
|
|
Proceeds
from employee stock purchase plan
|
184
|
|
175
|
|
Proceeds
from the issuance of senior convertible notes
|
200,000
|
|
-
|
|
Payments
for debt issuance costs
|
(6,690)
|
|
-
|
|
Payments
for convertible note hedges
|
(43,940)
|
|
-
|
|
Proceeds
from the issuance of warrants
|
29,740
|
|
-
|
|
Purchases
of treasury stock
|
(657)
|
|
(437)
|
|
Stock-based compensation windfall tax
benefit
|
2,943
|
|
1,304
|
|
Net cash provided by financing
activities
|
184,709
|
|
3,098
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
178,450
|
|
(135,294)
|
|
Effect of
exchange rate changes on cash and cash equivalents
|
385
|
|
280
|
|
Cash and
cash equivalents, beginning of period
|
78,709
|
|
192,563
|
|
Cash and
cash equivalents, end of period
|
$
257,544
|
|
$
57,549
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure:
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
Income taxes
|
$
1,109
|
|
$
1,280
|
|
Interest
|
217
|
|
14
|
|
Non-cash
investing and financing activities:
|
|
|
|
|
Non-cash consideration issued for
investment in Chrome Data Solutions
|
42,301
|
|
-
|
|
Accrued capitalized hardware, software
and fixed assets
|
1,879
|
|
3,725
|
|
Capitalized stock-based
compensation
|
-
|
|
31
|
|
Deferred compensation reversal to
equity
|
38
|
|
50
|
|
Assets acquired under capital leases and
financing arrangements
|
725
|
|
-
|
|
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income to Non-GAAP
Adjusted EBITDA
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2012
|
|
2011
|
|
|
|
|
|
GAAP net
income
|
$
16,961
|
|
$
24,728
|
|
Interest
income
|
(230)
|
|
(114)
|
|
Interest
expense - cash
|
454
|
|
32
|
|
Interest
expense - non-cash
|
703
|
|
-
|
|
Provision
for (benefit from) income taxes, net
|
11,389
|
|
(25,713)
|
|
Depreciation of property and equipment and
amortization of capitalized software and website costs
|
5,100
|
|
4,885
|
|
Amortization of acquired identifiable
intangibles
|
6,879
|
|
6,860
|
|
EBITDA
(non-GAAP)
|
41,256
|
|
10,678
|
|
Adjustments:
|
|
|
|
|
Gain on disposal of
subsidiary
|
(27,693)
|
|
-
|
|
Acquisition-related and other
professional fees
|
199
|
|
330
|
|
Contra-revenue
|
1,102
|
|
943
|
|
Integration and other related costs
(including amounts related to stock-based compensation)
|
-
|
|
652
|
|
Acquisition-related contingent
consideration changes and compensation expense
|
178
|
|
75
|
|
Rebranding expense
|
51
|
|
-
|
|
|
|
|
|
Amortization of equity method investment
basis difference
|
996
|
|
-
|
|
Adjusted
EBITDA - previous presentation (non-GAAP)
|
$
16,089
|
|
$
12,678
|
|
Stock-based compensation (excluding
amounts included in integration and other related costs)
|
3,330
|
|
2,815
|
|
Adjusted
EBITDA - new presentation (non-GAAP)
|
$
19,419
|
|
$
15,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Reconciliation of GAAP Net Income to Non-GAAP
Adjusted Net Income
|
|
(Dollars in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2012
|
|
2011
|
|
|
|
|
|
GAAP net
income
|
$
16,961
|
|
$
24,728
|
|
Adjustments:
|
|
|
|
|
Deferred tax asset valuation allowance
(non-taxable)
|
-
|
|
(24,548)
|
|
Amortization of acquired identifiable
intangibles
|
6,879
|
|
6,860
|
|
Stock-based compensation (excluding
integration and other related costs)
|
3,330
|
|
2,815
|
|
Gain on disposal of
subsidiary
|
(27,693)
|
|
-
|
|
Contra-revenue
|
1,102
|
|
943
|
|
Integration and other related costs
(including amounts related to stock-based compensation)
|
-
|
|
652
|
|
Interest expense - non-cash (not
tax-impacted)
|
703
|
|
-
|
|
Amortization of equity method investment
basis difference
|
996
|
|
-
|
|
Acquisition-related and other
professional fees
|
199
|
|
330
|
|
Acquisition-related contingent
consideration changes and compensation expense
|
178
|
|
75
|
|
Amended state tax return impact
(non-taxable)
|
-
|
|
32
|
|
Rebranding expense
|
51
|
|
-
|
|
Tax impact of adjustments (a)
|
6,738
|
|
(4,397)
|
|
Adjusted net income
(non-GAAP)
|
$
9,444
|
|
$
7,490
|
|
|
|
|
|
(a) The tax impact of adjustments
for the three months ended March 31, 2012, are based on a U.S.
statutory tax rate of 37.4%applied to taxable adjustments other
than amortization of acquired identifiable intangibles and
stock-based compensation expense, which are based on a blended tax
rate of 37.3% and 37.0%, respectively. The tax impact of
adjustments for the three months ended March 31, 2011, are based on
a U.S. statutory tax rate of 38.3% applied to taxable adjustments
other than amortization of acquired identifiable intangibles and
stock-based compensation expense, which are based on a blended tax
rate of 37.6% and 38.0%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Reconciliation of Forward-looking GAAP Net Income
to Forward-looking Non-GAAP Adjusted EBITDA
|
|
(Dollars in millions)
|
|
(Unaudited)
|
|
|
|
|
|
Year
Ending December 31, 2012
|
|
Expected Range
|
|
|
|
|
|
GAAP net
income
|
$
27.0
|
|
$
30.0
|
|
Interest,
net
|
10.3
|
|
10.3
|
|
Income
taxes, net
|
16.3
|
|
17.3
|
|
Amortization of basis difference from joint
venture
|
4.0
|
|
4.0
|
|
Depreciation and amortization
|
23.6
|
|
22.6
|
|
Amortization of acquired identifiable
intangibles
|
25.8
|
|
25.8
|
|
EBITDA
(non-GAAP)
|
107.0
|
|
110.0
|
|
Adjustments:
|
|
|
|
|
Non-recurring costs
(a)
|
3.0
|
|
3.0
|
|
Realized
gains
|
(33.2)
|
|
(33.2)
|
|
Contra-revenue
|
4.0
|
|
4.0
|
|
Adjusted
EBITDA - previous presentation (non-GAAP)
|
$
80.8
|
|
$
83.8
|
|
Stock-based compensation (excluding
amounts included in integration and other related costs)
|
13.2
|
|
13.2
|
|
Adjusted
EBITDA - new presentation (non-GAAP)
|
$
94.0
|
|
$
97.0
|
|
|
|
|
|
(a)
Includes certain professional fees, integration and other related
costs and acquisition-related compensation expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Reconciliation of Forward-looking GAAP Net Income
to Forward-looking Non-GAAP Adjusted Net Income
|
|
(Dollars in millions)
|
|
(Unaudited)
|
|
Year
Ending December 31, 2012
|
|
Expected Range
|
|
|
|
|
|
GAAP net
income
|
$
27.0
|
|
$
30.0
|
|
Adjustments:
|
|
|
|
|
Stock-based
compensation
|
13.2
|
|
13.2
|
|
Amortization of acquired identifiable
intangibles
|
25.8
|
|
25.8
|
|
Amortization of basis difference from
joint venture
|
4.0
|
|
4.0
|
|
Non-cash interest expense (not
tax-impacted)
|
7.6
|
|
7.6
|
|
Non-recurring costs (a)
|
3.0
|
|
3.0
|
|
Realized gains, net of taxes
|
(19.6)
|
|
(19.6)
|
|
Contra-revenue
|
4.0
|
|
4.0
|
|
Tax impact of adjustments (b)
|
(19.0)
|
|
(19.0)
|
|
Adjusted net income
(non-GAAP)
|
$
46.0
|
|
$
49.0
|
|
|
|
|
|
(a)
Includes certain professional fees, integration and other related
costs, acquisition-related compensation expense.
|
|
(b) The tax impact of adjustments are
based on a blended tax rate of 38% applied to taxable
adjustments.
|
|
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Summary
of Business Statistics (Unaudited)
|
|
Three
months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar
31,
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
U.S. dealers (a)
|
18,345
|
|
17,543
|
|
17,629
|
|
17,660
|
|
17,373
|
|
|
|
Active
U.S. lenders (b)
|
1,165
|
|
1,120
|
|
1,103
|
|
1,062
|
|
1,010
|
|
|
|
Transactions processed (in thousands)
(c)
|
21,751
|
|
18,769
|
|
19,772
|
|
19,135
|
|
16,774
|
|
|
|
Active
U.S. lender to dealer relationships (d)
|
172,075
|
|
164,776
|
|
161,400
|
|
157,591
|
|
152,095
|
|
|
|
Subscribing dealers (e)
|
16,143
|
|
16,003
|
|
15,860
|
|
14,488
|
|
14,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) We consider a
dealer to be active in our U.S. network as of a date if the dealer
completed at least one revenue-generating credit application
processing transaction using the U.S. DealerTrack network during
the most recently ended calendar month. The number of active
U.S. dealers is based on the number of dealer accounts as
communicated by lenders on the DealerTrack
network.
|
|
|
(b) We consider a lender to
be active in our U.S. DealerTrack network as of a date if it is
accepting credit application data electronically from U.S. dealers
in the U.S. DealerTrack network.
|
|
|
(c) Represents
revenue-generating transactions processed in the U.S. DealerTrack,
DealerTrack Aftermarket Services, DealerTrack Processing Solutions
and DealerTrack Canada networks at the end of a given
period.
|
|
|
(d) Each lender to dealer
relationship represents a pair between an active U.S. lender and an
active U.S. dealer at the end of a given period. 2011 results
are recalculated to reflect an improved methodology of accumulating
relationships. As previously reported: December 31, 2011 - 151,126,
September 30, 2011 - 150,514, June 30, 2011 - 149,398, March 31,
2011 - 146,660.
|
|
|
(e) Represents the
number of dealerships with one or more active subscriptions on the
U.S. DealerTrack or DealerTrack Canada networks at the end of a
given period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEALERTRACK HOLDINGS, INC.
|
|
Summary
of Business Statistics (Unaudited)
|
|
Three
months ended
|
|
Mar
31,
|
|
Dec
31,
|
|
Sep
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
|
|
2012
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction revenue (in thousands)
|
$54,079
|
|
$47,541
|
|
$50,411
|
|
$48,505
|
|
$38,435
|
|
|
|
Subscription revenue (in thousands)
|
$33,231
|
|
$38,779
|
|
$39,261
|
|
$34,716
|
|
$33,865
|
|
|
|
Other
revenue (in thousands)
|
$4,307
|
|
$4,939
|
|
$6,121
|
|
$5,830
|
|
$4,891
|
|
|
|
Average
transaction price (a)
|
$2.53
|
|
$2.58
|
|
$2.60
|
|
$2.58
|
|
$2.35
|
|
|
|
Transaction revenue per car sold (b)
|
$8.61
|
|
$7.17
|
|
$6.20
|
|
$5.73
|
|
$6.71
|
|
|
|
Average
monthly subscription revenue per
subscribing dealership (c)
|
$690
|
|
$813
|
|
$834
|
|
$807
|
|
$798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
monthly subscription revenue per
subscribing dealership (excluding Chrome & ALG)
(d)
|
$690
|
|
$690
|
|
$684
|
|
$649
|
|
$641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Represents the average revenue earned per transaction processed in
the U.S. DealerTrack, DealerTrack Aftermarket, DealerTrack
Processing Solutions and DealerTrack Canada networks during a given
period. Revenue used in calculation adds back transaction
related contra-revenue.
|
|
|
(b)
Represents transaction revenue divided by our estimate of total new
and used car sales for the period in the U.S. and Canada. Revenue
used in the calculation adds back transaction related
contra-revenue.
|
|
|
(c)
Revenue used in the calculation adds back subscription related
contra-revenue.
|
|
|
(d)
Excludes subscription revenue from Chrome and ALG.
|
|
|
|
|
|
|
|
|
|
|
|
|
TRAK-E
SOURCE DealerTrack Holdings, Inc.